DTN Before The Bell-Livestock
Livestock Futures Mixed in Early Going, Cattle Lower and Hogs Higher
The cash cattle market is dead quiet this morning with no signs of either bids or asking prices. Country potential may not take shape until Wednesday or Thursday. Parts of hog country are reporting initial bids ranging from steady to $1 higher. Corn futures are 2-3 cents higher at this time, supported by a lower dollar and higher than expected biofuel targets released by the government late Monday. The stock market is trading higher this mornin as investors focus on some data reports ahead of major central bank news expected later in the week. The Dow is 137 points higher with the Nasdaq positive by 37.
LIVE CATTLE:
Live contracts are moderately lower so far this morning, pressured by residual selling and uncertain beef demand. Many assumed the beef buying interest would improve on the far size of Thanksgiving, but so far evidence in that regarding has not been very impressive. Open interest on Monday decreased by 1,243 (278,349). Spot December liquidated by 2,958 (42,042) and February added 806 (117,677). DTN projected slaughter: 110,000.
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FEEDER CATTLE:
Feeder issues continue to get hit harder than their live counterparts. The first four contracts are off by triple digits as of this writing. Clearly, this reflect the ongoing implosion in feedlot equity and a new determination by feeding country to- work with more manageable breakevens down the road. Open interest on Monday increased by 515 (34,287). CME cash feeder index for 11/27: 173.80, up 1.64.
LEAN HOGS:
Lean futures are sharply higher this morning, ranging from plus 25 to plus 185. Bull spreading is powering the front end of the trade. Furthermore, improving fundamentals appear to be stoking the furnace of seasonal recovering. Technical buying also seems to be supportive as chart bottoms look more and more convincing. Open interest on Monday increased by 335 (200,949). Spot December liquidated by 1,986 (29,208) and February gained 928 (90,757). CME cash lean index for 11/27: 55.62, off .12. DTN projected slaughter: 438,000.
John Harrington can be reached at feelofthemarket@yahoo.com
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